New Delhi: The Reserve Bank of India (RBI) announced its third bi-monthly monetary policy for the current fiscal year on Wednesday. Also Read - Are You Saving Money By Putting in Savings Account? Actually NOT
The central bank slashed repo rate by 35 basis points amidst slowing economy which is now down to 5.4 per cent from 5.75 per cent and adjusted the reverse repo rate and bank rate at 5.15 and 5.65 per cent, respectively. Also Read - Bank Alert: RTGS Won't Work on Sunday? NEFT To Remain Normal? Here's What RBI Says
Taking into consideration various factors related to the global and domestic economy, real GDP growth for 2019-20 was also revised down from 7.0 per cent in the June policy to 6.9 per cent. Also Read - RBI Grade B Result: Phase-1 Marksheet And Cutoff Released | Direct Link and Other Details Here
According to the resolution of the Monetary Policy Committee (MPC) resolution, it has also decided to maintain the accommodative stance of monetary policy.
All members of the MPC unanimously voted to reduce the policy repo rate and to maintain the accommodative stance of monetary policy.
In its second bi-monthly monetary policy, the six-member MPC had lowered its GDP growth forecast to 7 per cent for the current fiscal from 7.2 per cent.
The next meeting of the MPC is scheduled during October 1, 3 and 4, 2019.
The resolution assessment stated that Global economic activity has slowed down since the meeting of the MPC in June 2019, amidst elevated trade tensions and geopolitical uncertainty.
“On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points (bps) from 5.75 per cent to 5.40 per cent with immediate effect,” read the resolution.